WHAT IS THE TOTAL COST OF PERSONAL BANKRUPTCY? BUSINESS LOANS

 

 

 

What is the cost of personal bankruptcy is a very important issue for those who say, “I’m wondering if I can not go out of debt because I can’t go back to bankruptcy .”

Self-bankruptcy is a system that exempts all debts you have (except for tax and other taxes).

Did you know that there are three types of procedures for such bankruptcy?

Depending on the procedure, there is a big difference between the total cost of 300,000 and 500,000 yen.

People who are considering bankruptcy should know what procedure they will take.

In this issue, I will introduce in detail the three bankruptcy procedures and the total cost of each bankruptcy.

table of contents

  • The procedure for personal bankruptcy changes the total cost depending on whether it is “simultaneous abolition” or “manship case”
    • The total cost and price of the simultaneous abolition case is 300,000 yen
    • Guidance of administrative property case costs from a total of 520,000 yen
    • The total cost of a small sum case for which a lawyer was asked to be a lawyer for personal bankruptcy is around 500,000 yen
  • Can I file an individual to reduce total bankruptcy costs?
  • 【Summary】 The total cost of personal bankruptcy is high, but the merit of asking a lawyer is great.

The procedure for personal bankruptcy changes the total cost depending on whether it is “simultaneous abolition” or “manship case”

The procedure for personal bankruptcy changes the total cost depending on whether it is "simultaneous abolition" or "manship case"

Self bankruptcy is conducted under the bankruptcy law for the following two purposes.

  1. Clear the debtor’s property fairly and pay out to the creditor
    Procedures for clearing property etc. for creditors = bankruptcy proceedings
  2. Securing economic life of the debtor
    Procedures to exempt debtors from the obligation to repay debts = Indemnification procedures

※ Bankruptcy Law Article 1

In this way, self-bankruptcy is not only for those who have difficulties in debt repayment but also for those who can not recover the money they have borrowed.

In order to proceed with the bankruptcy proceedings, you must basically investigate whether you have a bankruptcy property that you can liquidate.

However, in some cases, you may not do a property search.

And depending on whether or not this property investigation is conducted, the method of bankruptcy and the cost will differ.

The standard on which a property survey is conducted is: “Can I spend 200,000 yen on the procedure costs for personal bankruptcy?”

Standard Procedure method
There is no procedure fee 200,000 yen Simultaneous abolition case
※ There is no property survey
There is an asset worth more than 200,000 yen

  • Real estate (house, land, etc.)
  • 990,000 yen or more cash
  • Car of appraisal amount more than 200,000 yen
  • Life insurance cancellation policy over 200,000 yen

Such

Administration case
※ We perform property investigation for dividend to creditor

In this way, whether it is possible to pay the procedure costs of the personal bankruptcy or not, it is decided whether to proceed as a simultaneous abolition case or to proceed as a trustee case .

Then, we explain based on the market how much cost is necessary for each simultaneous abolition case, administration case.

The total cost and price of the simultaneous abolition case is 300,000 yen

According to the judicial statistics, about 60% of those who have filed for bankruptcy are simultaneously abolished .

※ Reference) 2017 judicial statistics

In the case of simultaneous abolition, there is no property investigation, so it is not necessary to pay for that amount.

However, just because there is no property search does not mean that the cost will be zero.

The costs for the simultaneous abolition may be considered to be almost legal fees.

In the past, there is the result of investigation about the lawyer’s expense that the Japan Bar Association was done.

There are a total of 4 million yen in debt from 10 companies including consumer finance, and the standard for attorneys’ fees when carrying out a bankruptcy procedure is the largest at 300,000 yen (49%) , followed by 200,000 yen (37%) was.

In addition, it seems that most lawyers have set it as 100,000 yen (14%) at 0 yen (66%) for compensation.

Furthermore, when we randomly selected 20 cases from the Tokyo Lawyers Office and researched the expenses, the start fee for the simultaneous abolition case was an average of ¥ 200,000 , and the remuneration was an average of ¥ 300,000 on an average of ¥ 100,000.

※ See) Japan Bar Association

From the results of the past surveys and the original research , it can be understood that the market price of the lawyer’s cost for simultaneous abolition is “300,000 yen” .

In addition to the attorney’s fee, a court fee of about 15,000 yen is required as shown below (in the case of Tokyo District Court).

  • Claim fee 1,500 yen
  • For postage stamp fee 4,100 yen ※ It fluctuates with the number of creditors
  • Gazette publication expense 10,584 yen

If you are thinking that you are going to go into bankruptcy because you are troubled with money, you will not be able to easily go into bankruptcy if you know that it will cost 300,000 yen.

But please rest assured there.

Depending on the law firm, you may be able to pay in installments or use the legal terrace, which will replace the costs.

Please refer to this article for details on how to pay for lawyers fees.

5 Ways to Pay for Lawyers Without Money

Point of expense of simultaneous abolition case

  • Cost of simultaneous abolition
    • Lawyer costs 300,000 yen
    • Procedure fee to the court 15,000 yen
  • Person who can not pay expense can use installment payment and legal terrace

Guidance of administrative property case costs from a total of 520,000 yen

Unlike the simultaneous abolition, we call a bankruptcy procedure that requires a property investigation a “manship case”.

In the case of trustee case, a person who is said to be a bankruptcy trustee appointed from the court investigates the property investigation and the disclaimer.

Disclaimers and disclaimers mainly refer to the following seven actions, and if these actions are confirmed, please be aware that you will not be exempted from repayment obligation even if you file for a personal bankruptcy.

  • Hidden property

    Acts to hide even if there is property, such as changing real estate in the name of oneself to relatives.

  • Cash act

    Just before bankruptcy shopping with a credit card, such as cashing products.

  • Happa repayment

    Make a partial repayment only to a specific creditor. It includes the act of returning only the debt from relatives.

  • Excessive gambling and wasted debt

    Horse racing, pachinko, gambling, stock, FX, excessive shopping that significantly exceeds income.

  • Fraudulent borrowing

    Within one year of filing for bankruptcy, there is a fact that the company has borrowed credit information falsely.

  • I have been discharged for bankruptcy within 7 years

※ See) Osaka District Court

If you become a trustee case, you must bear the compensation (prepayment) to the bankruptcy trustee who investigates the property investigation and the disclaimer.

Individuals who do not ask a lawyer to file for bankruptcy will increase the burden on the bankruptcy trustee, and the necessary prepayment will also increase.

The advance payment in the case of an individual complaint is determined by the total debt as shown in the table below.

Total debt Advance payment
Less than 50 million yen 500,000 yen
50 million or more and less than 100 million yen 800,000 yen
More than 100 million yen and less than 500 million yen 1.5 million yen

And the advance payment should be paid in a lump.

If you can not pay the deposit for the administration case, the details are described in “How to pay the deposit and how to handle it when you can not pay” .

In addition to the advance payment, the court costs approximately 20,000 yen as follows (in the case of Tokyo District Court) as follows.

  • Claim fee 1,500 yen
  • For postage stamp fee 4,100 yen
    ※ The amount of money changes depending on the number of creditors
  • Gazette publication expense 16,550 yen

It should be remembered that a bankruptcy trustee is a person who conducts bankruptcy trust business from the standpoint of a court.

Just because you’re paying money doesn’t mean that you’re making a research report that will benefit you.

I am not an enemy but I am not an ally.

If any point is determined to be unknown or suspicious, it will be investigated thoroughly.

In particular, if you have a disclaimer, consider the possibility that debt exemption will not be granted.

In that sense too, I would recommend asking a lawyer to act as an agent.

Point of expense of administration case

  • Administration case costs
    • Bankruptcy trustee expenses 500,000 yen …
    • Procedure fee 20,000 yen to the court
  • In the case of a personal trust case, there is no attorney fee because the bankruptcy trustee proceeds with the bankruptcy proceedings without asking a lawyer.
  • Even if there is no property, there may be a trust case (if it is necessary to investigate whether a self-bankruptcy loan may be permitted)
  • Bankruptcy trustee costs can be paid in installments by the court

The total cost of a small sum case for which a lawyer was asked to be a lawyer for personal bankruptcy is around 500,000 yen

In the case of trustee, a bankruptcy trustee appointed from the court said that he would investigate the property and investigate the disclaimer.

However, if you ask a lawyer, the lawyer can do the bankruptcy trust business (such as property investigation) that the bankruptcy trustee should do, instead.

By paying a part of the bankruptcy trustee’s work to the attorney, the compensation (prepayment) to the bankruptcy trustee can be kept low.
※ Prepayment amount, name, management differ according to each district court.

The Tokyo District Court calls this system a small-income case .

The prepayment amount for the small-income case by the Tokyo District Court is 200,000 yen. The price of the lawyer’s expense introduced at the beginning is 300,000 yen.

The total cost of the small sum case is approximately 500,000 yen + court procedure cost.

If you look only at the cost, you will receive the same impression as the administration case.

However, there is one major difference.

In the case of the administration case, it is necessary to make a lump sum payment of ¥ 500,000 to the bankruptcy trustee, whereas in the case of the small-scale administration case, it is necessary to pay the installment expenses It is the point that you can

  • Prepayment to bankruptcy trustee is in principle one-time payment

    The Tokyo District Court splits 50,000 yen × 4 times, but there are few courts that can make installments.

  • Attorney fee can be postpaid by division and use of legal terrace

    At the time of asking a lawyer, repayment will stop and you can afford to pay early.

It’s difficult to prepare a bunch of money, so it’s nice to be able to make some installments and postpays.

By the way, the court decides whether it will be a control case or a small sum case.

In the case of an individual who is basically not a corporation, it will often be treated as a small sum account case.

Point of expense of small sum administration case

  • The total cost of the small sum case is 500,000 yen
  • Advance payment to bankruptcy trustee 200,000 yen in principle lump sum payment
  • Attorney’s fee 300,000 yen can be postpaid by using installment and legal terrace

Can I file an individual to reduce total bankruptcy costs?

Can I file an individual to reduce total bankruptcy costs?

There were three types of procedures for personal bankruptcy: “simultaneous abolition case,” “manship case,” and “small money case,” and it was found that the costs for each were different.

In the case of bankruptcy, it is impossible to save the procedure cost to the court and the advance payment in the case of a trust case.

“But if we can save on lawyers fees …” In this way, may not some people think?

In fact, there is no need to ask a lawyer for simultaneous abolition and administration cases (simultaneous abolition and administration cases do not require a lawyer; only agent (lawyer) complaints are treated as small sum administration cases).

However, if you look at the questionnaire results that the Nichinenren went in 2014 ….

There is a petition agent (lawyer) 1,043 people 84.11%
Claimant (Lawyer) None 33 people 2.66%
Ask a judicial scrivener 162 people 13.06%
Unknown / Filled out 2 people 0.16%

※ See) Japan Bar Association

The following can be understood from the data in the above table.

  • 85% of people ask for a lawyer

    Even in the case of self-bankruptcy proceedings, where more than 60% will be abolished simultaneously, there are overwhelmingly many cases where a lawyer is asked.

  • Less than 3% of individuals claim

    It is presumed that the content to be provided in the submitted documents is complicated and numerous. If you ask a lawyer, there is an advantage to stop the immediate repayment.

  • You can make a petition yourself and ask a judicial scrivener to prepare a document

    It is effective in the case where it will be simultaneously abolished simultaneously. It is better to ask a lawyer if you have property and there is a possibility of a small sum account case.

The only way to save the total cost of personal bankruptcy is to file an individual claim.

However, if you definitely want a disclaimer with a claim for a personal bankruptcy, isn’t it better to ask a lawyer?

【Summary】 The total cost of personal bankruptcy is high, but the merit of asking a lawyer is great.

 

Even if it is difficult to live due to debt repayment, you may feel that it will cost you more money if you go out of your own bankruptcy, and that the financial burden will be heavy.

However, if personal bankruptcy is recognized and debts are exempted, life will soon be rich and full.

If you ask a lawyer, you will immediately stop asking for debt repayment and you will not have to repay it.

Attorney fees may also be paid in installments at an amount you can pay monthly.

Depending on the law office you request, you may be able to use the legal terrace to postpay 5,000 to 10,000 yen monthly.

Depending on the procedure, the costs required for self-bankruptcy vary greatly.

First, consult with an expert to find out which bankruptcy procedure you are in.

Finally, I have summarized the total cost of personal bankruptcy, so please refer to it.

Simultaneous abolition case Lawyer fee 300,000 yen Court fee 15,000 yen
Administration case Bankruptcy trustee compensation (prepayment) 500,000 yen …
Court fee 20,000 yen
Small money case Lawyer costs 300,000 yen …
Bankruptcy trustee compensation (prepayment) 200,000 yen …
Court fee 20,000 yen